HOYA CORPORATION
Q2 Financial Results Briefing for the Fiscal Year Ending March 2024
October 31, 2023

[Participants]
Eiichiro Ikeda
Ryo Hirooka

Director, Representative Executive Officer,
President & CEO
Director, Representative Executive Officer &CFOModerator: The attendance from our side are, Director, Representative Executive Officer, President, and CEO,Eiichiro Ikeda; Director, Representative Executive Officer, CFO, Ryo Hirooka.
Now, I'd like to invite Hirooka-san, the CFO, to talk about the results for Q2 and the update of the businesssegments. Thank you very much.

Hirooka: First of all, I'd like to talk about the group-wide results. As for the revenue, JPY188.7 billion; pretax
income, JPY63.6 billion; and profit from the ordinary activities, JPY52.4 billion. All in all, because of theweakening of yen, we had a positive growth on the revenue.
As you can see here, HDD glass substrates continued to decline, which was a big factor. For Q2 last year, HDD
glass substrates was not that bad. On a YoY basis, there was a bigger range of the negative growth. Life care,on the other hand, continued to have a solid growth. As a result the consolidated revenue was flat on aconstant currency basis.
On the profit, there is a difference in the margin, so the decline for the operating profit was bigger comparedto the decline in revenue.
As for the operating profit and the the pretax profit, there is a gap of JPY10 billion. Given that the US dollar
has become stronger, there was a FX gain of JPY3.5 billion. On July 1, a business was transferred, and there
was a JPY3.4 billion gain from this transfer. In addition, there was a increase of interest income related todeposits. The gap of JPY10 billion between pretax profit and operating profit, can be explained by these threefactors.

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First of all, on life care business, the revenue, JPY132.1 billion, 6% growth on a constant currency basis. The
business is indeed making a steady growth. The international sales is quite big. On a yen-denominated basis,
because of the weakening of yen, it grew by 11%. As for the pretax profit, JPY31 billion; in the operating profit,
JPY28.2 billion. The margin was 21.3%. The profit margin has been maintained. With regards to this segment,
20% is the standard that we have set for the profitability. This is just a benchmark.
On a quarterly basis, it is sometimes on the positive side, sometimes on a negative side. What is important isthat we should be able to maintain that within the 20% range, making investments in sales, selling expenses,
and so forth so that it would lead to the growth. This time, 21.3%, a rather high level.
As I mentioned earlier, sometimes, it's below 20%, sometimes, it's above 20%. This quarter just happened sothat it's above 20%. Going forward, the policy is that our mindset remains unchanged. We will stick to the
20% as a benchmark. We would like to increase the investments so that we can maintain the 20% and aim forthe growth in revenue. Just like the last quarter, in terms of this quarter, we will execute those activities.

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I would like to explain the growth rates of each product on a constant currency basis.
First of all, the eyeglass lenses. The growth rate was 7%. We were able to maintain steady growth across all
regions. From Q4 of previous year, the sales for the US major chains are on the growing trend on a YoY basis.
In United States, almost close to two-digit growth. Also, MiYOSMART and photocromic lenses are growing,
and China is also showing a strong growth. For Europe, although there was a decline in chain stores (which
our competitor acquired), we were able to get positive growth. We're actually overachieving the market
growth. Also, the high-value added products are selling quite well. We are continuing investment in selling
expenses and R&D costs, but the profit is also catching up with that.
Moving on to contact lenses. On a YoY basis, 9% growth, so close to two-digit growth. Last year, Q2 in Japan,
in July and August, we saw a spread of the COVID-19 infection. In the contact lens of Japanese market, that's
a reaction to last year that is being enjoyed. That's why it turned out to be 9%. On top of that, our private
brand products and the online delivery service to improve convenience are selling well in a recovering market.
Amid COVID-19, it has been difficult to increase the number of outlet stores. Now, that the market isrecovering steadily, we would like to resume opening the stores. For this year, we plan to open about 10
stores. They will not contribute to the sales this year, but it would contribute to our positive growth for next
year and onward. We are making investments for further growth. We'd like to once again accelerate that
initiative.
Moving on to endoscopes. Growth was minus 6%. Unfortunately, there is a negative growth here. That issomewhat dragging the overall life care good trend. The biggest factor is in China. Last year in Q2, there wasa bounce back from Covid with high sales. Compared to that, Q2 this year became a negative growth. We
wanted other regions to offset that but, in the US, it did not grow as we had expected. Therefore, on a YoY
basis, it turned out to be a negative growth. We've launched a new product. We want to make sure that thelaunch will pick up to lead to higher sales.
Moving on to IOLs. It is continuing to do well with a double-digit growth. Basically, in different regions,
including new products, we're doing quite well, especially in China but also Japan is growing. India is growing

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as well. The new high value-added products are being launched, and that is leading to sales and marketing
activities in different regions, achieving a higher revenue and higher growth.
Last but not least, artificial bones and others. As a business segment, not necessarily that big but close to adouble-digit growth rate. That is contributing to the overall life care segment growth.
All in all, as life care, other than endoscopes, they are making steady growth. As a result, 6% constant currency
growth was achieved.

Now, on IT business overview. The revenue is JPY55.5 billion; pretax profit, JPY26 billion. Operating profit,
JPY25.3 billion, 45.4% is the margin. Just like Q1, HDD substrate fell significantly. Q2 last year, it was relatively
good. On a YoY comparison, it's negative. On a QoQ basis, compared to Q1, it was worse. When we announced
Q1 results. We had anticipated this, and Q2 was within our expectation.
Another factor is mask blanks. Q2 last year, mask blanks had a positive growth. From Q4, there was aninventory adjustment on the client side, which is coming down. Compared to Q2 last year, slight negative
growth. Here, on QoQ, it's an increasing trend. Q1 is the bottom for the time being.

4Now, I will explain the overview by product.
First of all, LSI, minus 3% on a constant currency basis. The guidance was in the middle of the single digits. It
was a bit better than we had anticipated, but it's within our expectation in terms of the range. Good or bad,the external environment has not changed. Better compared to Q1, especially EUV, is coming back comparedto Q1.
For the outlook, rather than a significant recovery, it will be a moderate slow recovery is what we expect. For
Q3, Q3 last year was very good. Compared to Q3 last year, we won't be able to recover to that level. After
that, Q4 last year was not good. Q4 this year should be better than Q4 last year. What we had expected at theend of Q1, the business environment has not changed. Another factor that has not changed, in terms of therelationship via vis-a-vis the competitors, nothing has changed. With the external environment, how quick
can we expect a recovery, will be the key point here.
Moving on to FPD, slight positive growth. Good or bad, no significant events during this quarter. Joint venturewith the Chinese customer, it's pretty much on the schedule. The preparation is underway smoothly. We
would like to take the high value-added products market in a stable way. HDD substrates, this has the biggest
impact on the group-wide level. Compared to the previous year, 43% negative. Again, Q2 last year was stillgood.
HDD substrate growth rate was a big negative. The market environment, for some time, last time and themeeting before that, we said that it's very difficult for us to forecast, and that remains unchanged. It's notgetting better, but it's not getting worse either. That's the impression. It's not that we have a good outlook
for the future. In other words, we really don't know. That's continuing. H2, just flat from Q2 or maybe plusalpha. I think that will continue for the rest of this year.
Last but not least, Imaging. Compared to previous year, 7% positive. As you can see, the new camera launches,
the camera manufacturers are actively launching the new products. From our perspective, theinterchangeable lenses sales are increasing compared to the previous year. Again, as a business, on a quarterly
basis, sometimes there is a demand for the interchangeable lending. Some quarters, we don't.

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On a QoQ basis, sometimes, it can be positive, sometimes, it can be negative. That remains a change. The
important thing is even though there is a fluctuation, we need to have a structure to be able to maintain the
profit to run this business. It's on the positive side. This time, it was good. Within this profit structure, we haveto run and manage the business.

If you can move on to the next page, these are other topics: shareholder return, CapEx, and depreciation andamortization as it represents in the slide.
In the last financial results announcement, we announced share buyback. In October, we have completed
buyback at today's board meeting. For the ones which were acquired, we resolved to cancel the shares
repurchased. As for the interim dividend, JPY45 is what we are planning. That is all for the performance update.
Moving on, Arashida would like to talk about MiYOSMART, myopia progression control lenses.

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Arashida: For this product, at the financial results meeting a year ago, we introduced this product for the firsttime. With that background, I'm sure many of you are already familiar with this product. Once again, I would
like to reiterate its overview. MiYOSMART. Going back 10 years ago, we started a joint research with Hong
Kong Polytechnic University. Starting from Hong Kong and China in 2018, we started the sales as the myopia
progression control lenses for pediatric use. You see the sematic diagram here. The central part is just like thenormal spectacle lenses. It's transparent.
In the peripheral, it has the Defocus on the periphery, D.I.M.S., patented technology. For surgeries and unlike
the solutions which insert lenses to the eye, it's not an invasive approach, and this is the key point. In theclinical trial results, which was implemented in Hong Kong, compared with the case using the regular glasses,
this prototype is able to slow the progression of myopia by 60%. If you have time, please refer to the link here.

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Please move on to the next page. It has been almost five years since the launch in the market of MiYOSMART,
but with the ophthalmology-related organization, we have a good evaluation. Here, you see some of the many
awards and also recommendations from ophthalmology-related organizations. After a later time, please checkthe links.

Please move on to the next page. MiYOSMART, in 2018, they started the sales in Hong Kong and China. Since
then, they have continued geographical expansion. Now, it's sold in more than 30 countries. As of now, thesales volume in China is the highest, but more recently, with the increase of the handling in France, UK, and8

Canada, the sales volume outside of China is increasing. With this background, in this Q2, MiYOSMART sales
continue to have two-digit growth. Furthermore, globally, already over two million parents chose MiYOSMART.

Next page, please. Lastly, this is the recent status of MiYOSMART as a summary on this page. MiYOSMART
photochromic lens version, MiYOSMART Chameleon, and the sunglass version, Sunbird, were launched forthe prevention of myopia of children. As a measure to counter progression of myopia, outdoor activities arepaid attention to. Those children who spend more time in bright environments outdoors are not susceptible
to developing myopia. The expansion of the lineup will be very useful. We are continuing to have the researchand clinical studies.
In European children, we were able to have an equivalent of the superior results, just like with the children in
Asia. Needless to say, myopia is a global social issue. We continue to seek approval in regions and countries
where MiYOSMART is not yet available in order to solve this issue. In this past quarter, MiYOSMART was
launched in five markets, Colombia, the Philippines, Turkey, Slovakia, and Slovenia. This was very brief, but I
just explained the recent status of MiYOSMART.

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Question & Answer
Moderator [M]: Now, we would like to move on to the Q&A session. Due to the simultaneous interpretation,
if you select Japanese, please speak in Japanese. If you select English, please speak in English. If you have any
questions, please make sure to press the raise hand function of Zoom. If you are joining by telephone, pleasepress star and number nine. Please identify your name and affiliation. As the time is limited, including thefollow-up questions, I ask you to limit your questions to only two questions per person.
First of all, Yoshida-san, over to you.
Yoshida [Q]: This is Yoshida from CLSA Securities. The first question is EUV blanks. You mentioned that thecompetitive landscape does not change. On the other hand, Shin Etsu commented to start mass production.
What is your outlook for the competitive landscape? If you can comment, by node, that will be helpful. Thisis the first question.
Moderator [M]: Ikeda would like to respond to your question.
Ikeda [A]: The competitor announced a quite a proactive comment. From our perspective, currently, we are
not pleased with order by node. It's not so clearly visible. With the existing products, we don't see any dropin order with more allocation to the competitor. It's not yet visible from our side.
In the advanced side, it may not be the issue here, but the development of advanced products, for example,
with 2-nano, favorably, our product is certified, and competitors' products are not evaluated at the same time.
This is just our speculation but in some of the EUV layers, the product of competitors may be evaluated by
the customer as a second supplier. So far, with such products, we are not seeing any drop in the number oforders placed for us.
Yoshida [Q]: Moving on to the second question. In Taiwan, next-generation smart phone lens, North American
manufacturers seem to have acquired the capacity. I would like to know the outlook the imaging business,
including that aspect.
Ikeda [A]: For the imaging business, the digital camera market has contracted to a certain extent. Hence, weare looking for something new to compensate the drop. We are exploring possibilities and doing sampling
work on an ongoing basis.
Unfortunately, there is no topic in the financial results meeting. So far, we have not found any major possibility.
As Hirooka mentioned, even with the small market, we have the structure to generate profit. This is thecurrent operation. As mentioned, we are looking for new applications. To your point, we don't know what will
occur in the future. At some point in time in the future, we are hoping to look for new application. We justcontinue to have such activity.
Moderator [M]: Next, Shibano-san, please.
Shibano [Q]: From Citigroup Securities, my name is Shibano. What is the future outlook for EUV mask blanks
and HDD substrates? When you released your Q1 results, you expected EUV blanks revenue to recover 10%.
I had the feeling that it was more like 20% growth this time. Is that correct? In the upcoming quarters, is a
mid-single-digit QoQ growth the right image? Likewise, for HDD, you expected a QoQ 20% decline into Q2.
How did that turn out? What QoQ momentum are you expecting for the upcoming quarters?

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Hirooka [A]: As you have pointed out, yes indeed the EUV blanks was a 20% growth on QoQ. Going forward,
can we continue that momentum? That's not necessarily what we expect. Rather than EUV but as blanks as awhole, Q3 will see a mid-single digit decline YoY. From Q2 to Q3 last year, there was certain growth. This year's
growth would not be that level. From Q1 to Q2, EUV did grow, but blanks as a whole, the slow moderate
recovery will continue from Q3 to Q4. That's what we expect.
Speaking of the HDD substrates, we did anticipate further decline, but it was actually a little bit better than
we had anticipated. Going forward, in terms of how we see it, we expect really slow gradual recovery. There
are some signs of that, but then can we really trust that or not? We shouldn't depend too much on that. Q2
being a benchmark, it will be slightly be up or down for H2. What I mentioned is HDD substrate as a whole.
Shibano [Q]: My second question is for Mr. Ikeda. Ever since you became a CEO and President, you talked
about cross horizontal R&D with additional layers. What have you achieved so far with this effort given yourhistory? I think a lot of people are not used to that. I think there could be some negative factor such as frictions.
Is there any observation that you can share with us so far?
Ikeda [A]: I think you know very well about our internal environment. Yes, it's true that there is somewhat ofa friction, but then, having additional layers, other than existing businesses, we would like to explore new
growth areas for some neighboring areas to the existing business segments which we can expect the synergy
to achieve new growth.
For those, anyone in regardless of the position, support that idea. It's not that there is any objection or friction
towards that. Everyone is quite forward-looking and proactive on that. In terms of what's inside the existing
businesses, having additional layers, there could be a concern. You may be concerned, but then, having
additional layer is only to explore something new. That's the purpose in terms of the organization. For that
purpose, we have to work as one facing the same direction. I think you can take it that way.
In terms of the outcome, so far, with the three companies and in different respective areas, where we're goingto take up a challenge on new areas, we are continuing that discussion. Also, we're exploring opportunities
for M&A. With this organization and people joining us from outside as well with those capabilities. It’s notthat we have any specific output yet, but those efforts are actually working out smoothly, and that's one
positive thing. Please give us some more time for us to be able to give you some specific outcomes.
Moderator [M]: Moving on to Nakamura-san.
Nakamura [Q]: This is Nakamura from Goldman. I have two questions. The first one is related to the idea
behind Q1. It seems like it hit the bottom, and we do understand that the guidance is not yet an issue, but can
you give us hints for the idea behind the operating profit?
Hirooka [A]: Yes. In life care, in principle, there is no major change, but with the momentum, how we canmaintain the growth rate or improve over Q2, this will be critical. In terms of profit, around 20% remains thesame. That is our view for life care. With respect to IT, as we said for LSI, compared with Q2, there may be aslight improvement from Q2.
Considering that, life care and IT balance, Q3, we are hoping that the operating profit would improve. Whenit comes to IT, in Q4, there will be seasonality and the weight for life care will be greater. If you ask whether
there will be major change compared with H1, IT may not be as bad as H1. That may be the view. This will be
the situation that would continue for this fiscal year.
Nakamura [Q]: My second question is related to share buyback and M&A. We would like to check your view.
You deferred a buyback, but is there any change in your view for M&A?

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Moderator [M]: Ikeda would like to respond to your question.
Ikeda [A]: Our view and the position has not changed. As we have been reiterating, if there are opportunities
for M&A, or if there is priority placed internally, and if there is any excess cash, then that will be returned in
the form of buyback or dividend. This may not be on a quarterly basis, but as an annual or total amount. Thisis our view. As of now, we have not changed our position, and we would like to continue this position as well.
Moderator [M]: Next, Wadaki-san, please?
Wadaki [Q]: This is Wadaki from Mitsubishi UFJ. My first point is on EUV blanks forecast for next year, if you
can comment on that. It seems to be struggling. Are you expecting a steady recovery there? What is youroutlook for next year?
Ikeda [A]: As Hirooka mentioned earlier, Q1 was the bottom, and Q2, Q3, and Q4, moderate slow recovery is
expected for this year. Next year, whether we can expect a significant recovery next year, probably not. H1
next year, I think this moderate slow recovery will continue. That's how we see at some timing. To havesignificant recovery back to the previous level, I don't think it would happen. As Q1 was the bottom, Q1 shouldhave been the bottom. With that, the slow recovery shall continue towards Q1 of next year.
Wadaki [Q]: In relation to that, phase shift, maybe the prices could go up. Any update on the 300-millimetermasks and the others?
Ikeda [A]: Now, phase shift masks, we developed them as the clients to evaluate them, and I think we can saythat it's been certified, but then it's a cutting-edge node. In order for us to move on to the mass production,
it's still a few years ahead. In terms of efforts, for the high value-added products, the phase shift masks arebeing developed in quite smoothly.
For High-NA, the blanks, we've started the development for that. As for the difference in size, we're notworking on that specifically, but if the size is going to change, it will require CapEx. Other than that, that it
requires a CapEx. I think there are no other hurdles to address size change. That's where we are.
Moderator [M]: Thank you. Damian, please?
Thong [Q]: This is Damian. About glasses, at regular glass lens in the chain stores, what is the progress? Can
you talk about the progress and MiYOSMART? Currently in China, the percentage is quite high, and especiallynext year, MiYOSMART growth target in overseas. If you have any, can you explain?
Ikeda [A]: Yes. About the US chain store, we cannot give you the names of the customers. Until now, we did
not have many transactions with some of the retail chains, and they are now handling our products. They are
significantly contributing to the increase on a YoY basis in the United States. It was an outcome of replacing
the sales force in the US as this was the challenge.
Speaking about the future of MiYOSMART, as I said earlier, we are rolling out in many countries. Having said
that, MiYOSMART is not a single product, but as was explained by Arashida, by combining with photochromic
lenses, these products may serve as the door openers to develop other retailers. We will be conducting suchactivities, although we continue these activities now.
MiYOSMART, by launching this product, it is not only driving revenue with the single product, but we are
expecting that there will be more impact to our figures. That is our expectation. The result is that we areexceeding our competitor, and we are achieving our growth. We would like to continue our momentum toexceed the competitor, as well as the market. That is our view.

12Thong [Q]: May I ask one follow-up question? Your company has the momentum at the moment, but thecompetitor’s price competition, is there a possibility for promotions?
Ikeda [A]: Well, for MiYOSMART product per se, the competitors do have the products. I'm not in a position
to comment on how they would behave. The combination with the photochromic lenses that we mentioned
earlier, those are only unique to our company. There seems to be a hurdle for the competitors to launch inthis segment as far as we understand. With this product lineup, we feel that this will be our strength.
Moderator [M]: Katsura-san.
Katsura [Q]: SMBC Nikko Securities, my name is Katsura. Earlier on the previous question on M&A, if I can ask
you to elaborate further on the M&A policy. In terms of the change in the industry, WDC and KIOXIA,
integration discussion was ended. You have a stake in KIOXIA, and in the business, you have a relationship on
hard disk. What is your take with this change in the industry? A few years ago, for the NuFlare, there was a
proposal for acquisition. After Ikeda-san became President, you mentioned looking at the short end the long
list in a wider way. I think you are having a discussion under service, not visible to us. If there's anything thatyou can share with us at this point in time is my first point.
As a follow-up for that, I think this should be just Hirooka-san, but this time, for this quarter, you didn't do any
share buyback. As cash JPY465 billion, maybe with the currency, but I think it's at a rather high level. What isyour view about how this fair level should be?
Ikeda [A]: Well, first of all, on the KIOXIA news, when we made an investment, we said that it's a pureinvestment aiming for a capital gain. That's what we had explained, and that remains unchanged. There are
HDD clients, so you might have some speculation, but rather than the strategic stake, it's a pure investment
for capital gain, and that remains unchanged as of now.
Now, for M&A, short list, the long list. Of course, we do have those lists. We're looking into the opportunities,
and new flare is one target, as part of the list. Of course, there is the other side. At this point in time,
unfortunately, there's nothing that we can share with you, nothing specific that we can share with you.
As first discussed earlier, now that we have this company structure to explore new business opportunities
under that organization and to constantly explore those targets, working on the M&A activities, we arecontinuing our efforts. Unfortunately, I don't have anything specific that I can share with you today, but weare continuing such efforts.
Hirooka [A]: Well, as Ikeda-san mentioned, the cash allocation or share return to shareholders, our policy
remains unchanged basically. It’s not about doing a share buyback in all the quarters, but for the same periodof time, we would like to provide a return to the shareholders given a certain period of time. Depending on
the situation of the time, we are to execute the share buyback. The basic policy remains unchanged. The
current level is rather high, as you pointed out correctly.
On the other hand, as was mentioned a little bit, the currency part is quite big. About 70%, we have US dollars.
In terms of the foreign currency, I think that it's even higher. Now, it's a big factor. In that sense, the currency
trend is one important point. Just for H1, just with the currency, it has increased by JPY36 billion. On a yenbase, it's rather inflated, it's quite high, and we recognize that. Again, our policy remains unchanged for a set
period of time. We would like to work on providing return to the shareholders. Thank you very much.
Moderator [M]: As the closing time is approaching, the next person will be the last person to ask a question.
Kaye-san, over to you.

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Kaye [Q]: In the quarter we just ended, EUV blanks were recovered, and there is an increase in revenue. Whenit comes to the background, is it possible for you to share the background? Next fiscal year, you just gave us
the image, but it would not be exclusive growth in the future. From the objective point of view, phase shift,
and the increase in the customer side in the production, with the increase of production at the customer side,is there any reason why you do not see the increase in your revenue in blanks? Can you explain within thepossible range?
Ikeda [A]: EUV is now positive over the last quarter. Simply put, the reason for the drop was the increase ininventory at the customers. There was a drop in the use in the application. At the near side, there was anincrease in customers' inventories. The order stopped. This occurred at multiple customers, and one of them
progressed with the inventory adjustment. We are seeing the recovery of the order placement. That is thereason why we are seeing positive figures over the last quarter. Given this environment, Hirooka's explanation
I might not have been clear. Maybe you have a complaint, but there is a gradual recovery QoQ and that isbased on this kind of environment.
You are asking for more positive factors after next fiscal year. Basically, EUV, the share in the market isbasically just our company only in the market. It really does depend on the demand, and it's very difficult topredict. If I mentioned something positive, as we mentioned, the development of the advanced products
against 2-nano glasses, blanks, certification is on track, and the phase shift and mask is also included as a partof that. The demand in the future, advanced new products, we are having positive moves for that. These areleading-edge nodes. This would not contribute next fiscal year. This will be some time ahead. The free nanoto-nano certification status is on track. This is something positive towards the future.
Moderator [M]: The time has come. With this, we would like to close today's meeting for Q2 results. Thankyou very much for being with us despite your busy schedule.
[END]______________
The comments and questions and answers at the briefing are provided for reference information only. Please note that this is not anexact transcription of the entire presentation.

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